To ask the Chancellor of the Exchequer, what assessment he has made of the potential effectiveness of the consumer duty proposed by the Financial Conduct Authority in their 14 May 2021 consultation on meeting the objective of consumers being owed a duty of care by authorised persons as required by section 29 of the Financial Services Act 2021.
The Government is committed to ensuring financial services consumers are appropriately protected.
In accordance with the requirements set out in the Financial Services Act 2021, the Financial Conduct Authority (FCA) published a consultation on 14 May 2021 proposing a new ‘Consumer Duty’. The Consumer Duty seeks to clarify and raise expectations for the standard of care that should be provided by financial services firms to consumers. This aims to ensure consumers benefit from a higher level of care from financial services firms.As set out in paragraph 2.31 of the FCA’s consultation paper, the consultation’s proposals have been specifically designed to meet the requirements of the Financial Services Act 2021. The FCA, as an operationally independent regulator, is responsible for carrying out the consultation and for making any new rules which it considers appropriate following the consultation. It would therefore be inappropriate for the Government to comment further on the specifics of the consultation’s proposals.